On October 12, the Ministry of Finance and the State Taxation Administration jointly issued a circular adjusting export rebate policies for certain products. Most relevant to the automotive industry, the VAT export rebate rate for new energy vehicles will be lowered from the current 13% to 9%, with the adjustment taking effect on April 1, 2027. The circular also announced the cancellation of VAT export rebates for electronic cigarette devices, as part of targeted policy adjustments.

The circular clarified several key details: for products subject to consumption tax, the existing export consumption tax policies will remain unchanged, with tax refund or exemption policies still applicable; the applicable rebate rate will be determined by the export date indicated on the export declaration form. The 4-percentage-point cut will directly impact the profit margins of automakers with significant export businesses. To some extent, it will also push automakers to accelerate overseas localized manufacturing, shifting from simple product export to local production — a trend that aligns with the recent overseas plant plans announced by multiple Chinese automakers.